Micron Technology Inc (NASDAQ:MU) shares rose about 14% in extended trading on Wednesday after the memory chipmaker reported fiscal third quarter results that exceeded Wall Street expectations and issued stronger-than-anticipated guidance for the current quarter.
The company posted non-GAAP earnings of $25.11 per share on revenue of $41.46 billion for the quarter ended May 28, surpassing analyst estimates of $20.39 per share and $35.1 billion in revenue, respectively.
Revenue more than doubled from $9.3 billion a year earlier and increased from $23.86 billion in the previous quarter. GAAP net income climbed to $28.24 billion, or $24.67 per diluted share, from $1.89 billion, or $1.68 per share, in the year-ago period.
Operating cash flow totaled $25.39 billion, compared with $11.9 billion in the prior quarter and $4.61 billion a year earlier.
Adjusted free cash flow reached $18.3 billion, while capital expenditures were $7.1 billion. Micron ended the quarter with $30.2 billion in cash, marketable investments and restricted cash.
"Micron's record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era," Micron CEO Sanjay Mehrotra said in a statement.
"Micron is investing at record levels in technology, products and supply to address our customers' rapidly growing demand. We believe our multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron's strong financial performance."
The company highlighted what it described as transformational Strategic Customer Agreements, which it said are expected to improve the predictability of its business over multiple years.
Micron's Cloud Memory Business Unit generated revenue of $13.77 billion during the quarter, while the Core Data Center Business Unit contributed $11.52 billion.
The Mobile and Client Business Unit recorded revenue of $11.52 billion, and the Automotive and Embedded Business Unit reported $4.63 billion.
For the fiscal fourth quarter, Micron forecast revenue of approximately $50 billion, plus or minus $1 billion, and non-GAAP earnings of about $31 per share, plus or minus $1.00. The company expects non-GAAP gross margin of roughly 86%.
Micron also declared a quarterly dividend of $0.15 per share, payable on July 21 to shareholders of record as of July 6.